- Shopee’s in-house logistics arm handled over 50% orders in Asia.
- SPX Express offers cost advantage over third-party logistics providers.
- Livestreaming investments made Shopee top ecommerce platform in Indonesia.
Shipping Supremacy Powers Ecommerce Giant
Shopee’s first-quarter results showcased impressive revenue and gross merchandise value growth.
Fueling this success, the ecommerce juggernaut’s in-house logistics arm, SPX Express, handled over half of Shopee’s orders across Asia and a staggering 70% in Brazil, solidifying its logistics dominance.
Tony Hou, CFO of Shopee’s parent Sea Group, highlighted SPX Express as a game-changer for unit economics.
By retaining profit margins otherwise charged by third-party logistics providers, SPX Express offers a cost-per-order advantage, with a 15% year-on-year reduction in Asia during Q1.
Homegrown Logistics Unlocks Cost-Saving Prowess
Logistics prowess translates into service excellence. Forrest Li, Sea Group’s Chairman and CEO, proudly stated that 70% of SPX Express orders in Asia arrived within three days of placement during Q1.
Additionally, Shopee’s strategic livestreaming investments in Q3 and Q4 2023 bore fruit, propelling it to become Indonesia’s largest livestreaming ecommerce platform based on average daily orders.
The company’s strategic cost-cutting measures included a 23% reduction in sales and marketing spending, attributable to improved marketplace performance and enhanced livestreaming unit economics.
Shopee’s relentless pursuit of creators in Indonesia, its biggest market, further solidifies its social commerce dominance.
To read the original article: https://www.techinasia.com/shopee-doubles-inhouse-logistics-capabilities-records-highest-quarterly-orders-q1
